Box Hill building sells for $9 million, without an agent

Katherine JimenezDecember 7, 2020

A suburban office building in Melbourne's Box Hill has attracted one of the biggest prices seen in years, and there was no agent involved. 

The building, at 899 Whitehorse Road, fetched $9 million, on a tight yield of just 6.7%. 

The vendor was a group of 16 individual investors in a syndicate managed by Vantage Property Investments.

Vantage’s spokesman Hamish de Crespigny said: “We were approached privately by a local investment group wanting to purchase the building from us and after protracted negotiations we agreed a price of $9 million.

“There is no agent involvement as it became simply a direct sale between our syndicate and the purchasing group.”

He said the 6.7% return hadn't been "seen in the $5 million plus Melbourne suburban office investment market since about 2007.”

The property has a lettable building area of 1,817 square metres plus basement car parking. It is currently leased to some 14 tenants in small business and professional accounting, IT and medical services type consultancies.

The property was last valued on 30 June at $6.8 million. At $9 million, the sale price represents a 32% premium to the current valuation and equates to a rate of $4,950 per square metre.

Mr de Crespigny said “our syndicate investors are currently looking to Vantage to identify a new commercial property investment most likely in the Melbourne City or suburban fringe office market as a re-investment opportunity for their capital.”

Mosaic Property Group investments is a long and well established property syndicator and investment property manager with a current property portfolio held on behalf of their investors of some eighteen properties in the City and suburbs valued at $175 million.  

news@propertyobserver.com.au

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